Concerns about future growth and growing losses could cap the upside for Teladoc 's stock, according to Deutsche Bank. The telehealth company on Tuesday beat Wall Street revenue projections for the previous quarter but reported a wider-than-expected loss per share, according to estimates from StreetAccount. Shares were down more than 9% in premarket trading. Following the earnings report, Deutsche Bank analyst George Hill downgraded the stock to hold from buy, saying that expectations needed to be reset for the company. "Despite the continued progress against its growth objectives, the aftermarket performance leads us to believe there is little the company can do in the near term to meet lofty investor expectations," the note said. One area of concern highlighted by Deutsche Bank is user growth, as membership rose just 1% year over year. That could be a continuing issue as the pool of potential corporate customers shrinks, the bank said. "We believe TDOC's business and its shares could be at an inflection point as new large logo clients that move the needle will be harder to find and utilization growth is unlikely to match the expansion of 2020/21," the note said. The firm slashed its price target on the stock to $153 per share from $225. The stock closed at $151 per share on Tuesday, but was trading near $137 in premarket action. —CNBC's Michael Bloom contributed to this report.
Jason Gorevic, CEO, Teladoc
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Concerns about future growth and growing losses could cap the upside for Teladoc's stock, according to Deutsche Bank.